Viridien S/Adr

Good day, and thank you for standing by. Welcome to the Viridian Third Quarter 2025 Financial Results Conference Call and Webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star, one, one on your telephone keypad. You will not hear an automatic message advising your hand is raised. To withdraw a question, please press star, one, and one again. If you wish to ask a question via the webcast, please use Q&A box available on the webcast link anytime during the live event. Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Alexandre Leroy. Please go ahead.

Good morning and good afternoon, everyone. Thank you for joining us today for Veridian's Q3 2025 results presentation. I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance. We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Giotia, our chair and CEO, and Jérôme Serre, Group CFO, who will walk you through our performance. Before we begin, a few housekeeping items. This call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.beuridiongroup.com. the presentation slides are also available for download from the website please note that today's presentation includes forward-looking statements actual results may differ materially from those expressed or implied today relevant risk factors are detailed in our 2024 universal registration document filled with the french financial market authority ams as usual we conclude with a q a session And finally, a quick reminder that Gerardien comments primarily on segment figures, which reflect our internal management reporting. These differ from IFRS numbers, also published today, due to IFRS 15 impacts on our Earth data business accounting. With that, I now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. Sophie, the floor is yours.

Thank you, Alexandre. Good morning and good afternoon, ladies and gentlemen. I'm now on slide two. Q3 2025 market marked another strong quarter, both operationally and financially. Operationally, our geoscience business continued to deliver robust results, leveraging market-leading technologies that addressed critical industry needs and drive value across both exploration and production. Earthdata late sales were particularly strong, fueled by sustained customer demand for our advanced datasets in mature and strategic frontier bases. This momentum was further supported by transfer fees from recent client M&A transactions. In sensing and monitoring, the land segment maintained solid performance, contributing meaningfully to the quarter. And financially, segment revenue reached $313 million, a 27% increase year-on-year. Segment adjusted EBITDA rose to $167 million, up 70% year-on-year. Net cash flow generation totaled $53 million for the quarter, bringing the year-to-date figure to $62 million as of September 2025. We remain confident in our outlook, our asset-light strategy, our focus on high-end technical solutions, and disciplined multi-client approach drives strong performance. Combined with supportive market fundamentals and a solid backlog, we confirm our full year net cash flow target of $100 million. Let me re-emphasize, this $100 million excludes any potential cashing for overdue receivables from Penex. Moving on to slide four. Q3 2025 was another solid quarter, with external revenue rising 5% year-on-year to $108 million. Activity remains strong in geoscience, driven by large ocean bottom node imaging projects in key mature basins, particularly in offshore fields in Brazil, in the US Gulf, where clients rely on our technology to optimize production. The Middle East also remained active, especially Abu Dhabi, where significant volumes of data were acquired. Despite a volatile oil price environment, order intake remained robust, underscoring our strategy and sustained industry demand for high-end imaging solutions that enhance exploration success and production efficiency in increasingly complex oil fields. Notably, over 50% of our geoscience revenue is tied to development and production activity, making this business sensitive to all price fluctuations compared to more exploration-driven segments. At the end of September, our Black Lock 2 stood at $290 million, providing strong visibility for sustained activity and cash generation, not only for the remainder of the year, but also into the first half of 2026. We remain confident in the resilience of our geoscience business, supported by a focus on complex offshore projects, long-term partnerships with value-driven clients, including leading IOCs and NOCs, high-end OBN imaging, which plays a pivotal role in development and infrastructure-led exploration. And this is an area where we lead the industry. Let's go to slide five. It illustrates a tangible example of how our geoscience imaging services directly contribute to optimizing field production, even in the most complex reservoirs. The image showcases BP's Atlantis field in the US Gulf, but the same approach applies to other challenging environments, including Brazil, Norway, Angola, and beyond. In this case, we partnered closely with the operator to deliver precise, high-end imaging of 4D OBN surveys, that is repeated ocean bottom node surveys over time. This enabled a detailed monitoring of fluid movement within the reservoir, allowing the operator to strategically inject fluids to enhance hydrocarbon recovery, optimize overall performance, and accurately position and drill new wells while minimizing drilling risk. For the operator, This translates into optimized production, improved economics, and a lower carbon footprint across both existing and new infrastructure. And for Viridian, it means recurring business anchored in production activities, strong exposure to development-led operations, and deep long-term relationships with clients who value our expertise in imaging, complex reservoirs offshore, especially through high-end combiennes where we lead the industry. Now turning to slide six for the Earth data performance review. In Q3 2025, EDA delivered a very strong performance with revenues up 63% year-on-year. This growth was driven by two key factors. Sustained industry demand for high-quality data, both in mature basins and high-potential frontier areas where we are strategically positioned, Transfer fees stemming from recent client M&A activity within the industry. Excluding transfer fees, which are a standard component of our Earthdata business, aftersales were strong. While the scale of transfer fees can vary year by year, their contribution this quarter was notable. Operationally, we made good progress on the Megabar Extension Phase 1 project in Brazil, reinforcing our presence in this attractive emerging basin. We're actively engaged in discussions for new projects in the U.S. Gulf and Eastern Mediterranean, with the latter showing renewed exploration interest, particularly in Egypt, as highlighted in recent industry headlines. Looking ahead, we remain confident in the long-term value and performance of our multi-client library, underpinned by the quality and relevance of our data sets, the strategic geographical focus, and our disciplined asset-light investment approach. Importantly, E&P companies are reaffirming their commitment to selective exploration, maintaining budgets despite potential short-term macroeconomic headwinds. Several countries are also evolving their regulatory framework to attract investment through licensing rounds and other incentives, which should further support multi-client sales momentum. As of September 2025, our Earth Data Library net book value stood at $534 million, concentrated in our most active offshore regions, including Norway, Brazil, and the US Gulf. And now on slide seven. I would like to highlight a highly valuable project for our clients, one that is also cash-generative for the region. This project is located offshore Uruguay, where we hold the marketing rights for 25,000 square kilometers of legacy streamer data acquired between 2012 and 2017. Recognizing Uruguay early on as a promising frontier area, we strategically entered the market by leveraging our high-end imaging technology. The dataset was re-imaged using our latest innovation, notably our unique TL-FWI, resulting in a remarkable improvement in image quality. This led to the identification of multiple high-potential prospects sparking strong clients' interest. And projects like this that leverage our imaging leadership typically receive hyperfunding and represent $30 to $40 million, or 15 to 20% of our annual multi-client capex. They are very attractive for Virgin because they allow us to unlock new frontier plays with minimal risk and high return, maximize the value of legacy data, and strengthen the relationships with local authorities, a key success factor for long-term engagement and success. This approach not only delivers meaningful value to our clients by enabling better informed exploration decisions, but also reinforces the region's strategic positioning in frontier basins and supports our cash generation objectives. Now moving on to slide eight, covering sensing and monitoring performance. In Q3 2025, SMO revenue grew 16% year on year, reaching $69 million. While our marine segment showed improvement compared to last year, momentum remains subdued. Overall growth remains primarily driven by the land segment, which continues to perform strongly. Our land nodal system, WING, is gaining traction with expanding sales across Asia and Latin America, reflecting growing market adoption. In Moraine, our tuned pulse source is now deployed across all sparse OVN surveys in the U.S. It is increasingly recognized as the reference solution for acquisitions requiring low-frequency signals, essentially for high-end subsurface imaging. Let's focus on land, as shown on slide nine. Activity remains resilient and well diversified, supported by the healthy mix of flagship high productivity surveys underway in North America, where we currently have over 80,000 nodes delivering excellent data quality. Multiple medium to small crews active across South America, the Middle East, and Asia, providing a broad geographical track record and install base. Technology momentum is also encouraging. We're seeing strong industry interest in Accel, our new job-only nodal solution, which was recently showcased at the Image Trade Show in the US, following its debut at EAG in France last June. We expected the Accel orders strengthening our SMO business in 2026. Under our New Businesses initiative, We have also achieved a milestone with the first deployment of one of our mainstream nodes for hydrogen projects, expanding our reach into emerging energy sectors. It's worth noting that even in the absence of Megacruise, SMO has demonstrated its resilience thanks to our deep market penetration, optimized operational structure, and strong reputation for quality and customer service. With that, I'll hand over to Gérôme, who will walk you through the financial performance review.